21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0152
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Summary Table
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.2
0.3
0.5
0.0
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent
Change in
After-Tax
4
Income
0.0
0.0
0.0
0.0
0.2
0.2
0.2
0.2
0.4
0.3
0.1
0.2
Share of Total
Federal Tax
Change
Average
Federal Tax
Change ($)
0.1
0.5
1.2
0.6
5.4
9.8
10.3
26.2
26.2
10.1
9.3
100.0
-1
-4
-10
-7
-74
-77
-126
-225
-780
-1,703
-3,094
-112
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
-0.2
-0.1
-0.1
-0.2
-0.3
-0.2
-0.1
-0.2
Under the
Proposal
5.3
4.5
8.8
12.9
15.5
17.7
19.4
21.8
24.5
25.5
29.6
20.8
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 5.0
Proposal: 5.0
** This table is part of a series of tables showing the distributional effects of moving incrementally from current law to current policy. For definitions and further
information, see “Related Tables: Moving Incrementally from Current Law to Current Policy” at
http://taxpolicycenter.org/numbers/displayatab.cfm?template=simulation&SimID=366
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the
10, 25, and 28 percent rates; set the standard deduction and 10 and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC
phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax Credit (EITC), the Child and
Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on longterm capital gains (0 percent for tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption
phaseout (PEP) and limitation on itemized deductions (Pease); extension of the 33 and 35 percent tax brackets. Policy is an estate tax set at the 2009 level, not indexed
for inflation ($3.5 million exemption, 45 percent tax rate).
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and
estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average
cash income.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0152
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units
3
With Tax
Increase
With Tax Cut
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.2
0.3
0.5
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
0.0
0.0
0.0
0.0
0.2
0.2
0.2
0.2
0.4
0.3
0.1
0.2
0.1
0.5
1.2
0.6
5.4
9.8
10.3
26.2
26.2
10.1
9.3
100.0
Average Federal Tax Change
Dollars
-1
-4
-10
-7
-74
-77
-126
-225
-780
-1,703
-3,094
-112
Percent
-0.3
-0.5
-0.5
-0.1
-1.0
-0.7
-0.7
-0.7
-1.1
-0.9
-0.3
-0.7
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
0.1
0.0
Under the
Proposal
0.2
0.7
1.9
3.0
3.7
10.3
10.1
25.4
17.2
7.6
19.6
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
-0.2
-0.1
-0.1
-0.2
-0.3
-0.2
-0.1
-0.2
Under the
Proposal
5.3
4.5
8.8
12.9
15.5
17.7
19.4
21.8
24.5
25.5
29.6
20.8
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units
Number
(thousands)
16,958
24,305
21,133
16,074
12,909
22,702
14,431
20,606
5,930
1,048
531
157,348
3
Percent of
Total
10.8
15.5
13.4
10.2
8.2
14.4
9.2
13.1
3.8
0.7
0.3
100.0
Average
Income
(Dollars)
5,723
15,533
25,808
36,190
46,615
64,099
90,195
141,257
296,062
704,969
3,114,004
76,169
Average
Federal Tax
Burden
(Dollars)
305
708
2,275
4,683
7,304
11,396
17,592
30,996
73,183
181,772
924,865
15,954
Average AfterTax Income 4
(Dollars)
5,418
14,825
23,533
31,506
39,311
52,703
72,603
110,260
222,880
523,198
2,189,139
60,215
Average
Federal Tax
Rate 5
5.3
4.6
8.8
12.9
15.7
17.8
19.5
21.9
24.7
25.8
29.7
21.0
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.8
3.2
4.6
4.9
5.0
12.1
10.9
24.3
14.7
6.2
13.8
100.0
1.0
3.8
5.3
5.4
5.4
12.6
11.1
24.0
14.0
5.8
12.3
100.0
0.2
0.7
1.9
3.0
3.8
10.3
10.1
25.4
17.3
7.6
19.6
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Number of AMT Taxpayers (millions). Baseline: 5.0
Proposal: 5.0
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on long-term capital gains (0 percent for
tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption phaseout (PEP) and limitation on itemized deductions (Pease); extension of the 33 and 35 perc
tax brackets. Policy is an estate tax set at the 2009 level, not indexed for inflation ($3.5 million exemption, 45 percent tax rate).
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0152
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Single Tax Units
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.1
0.1
0.2
0.4
1.0
1.2
1.6
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.1
0.0
0.4
0.4
0.7
1.2
2.2
1.9
0.6
0.6
Share of Total
Federal Tax
Change
0.1
0.5
1.2
0.4
6.2
11.2
11.4
28.8
25.4
8.6
6.1
100.0
Average Federal Tax Change
Dollars
-1
-5
-15
-9
-153
-190
-473
-1,271
-4,810
-9,359
-12,117
-217
Percent
-0.2
-0.4
-0.5
-0.1
-1.7
-1.4
-2.2
-3.7
-6.0
-4.6
-1.3
-2.3
Share of Federal Taxes
Change (%
Points)
0.0
0.1
0.1
0.2
0.1
0.2
0.0
-0.3
-0.4
-0.1
0.1
0.0
Under the
Proposal
0.9
3.0
6.0
7.5
8.6
19.0
12.0
17.8
9.5
4.2
11.4
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
-0.1
0.0
-0.3
-0.3
-0.5
-0.9
-1.6
-1.3
-0.4
-0.5
Under the
Proposal
8.5
8.4
13.3
17.4
19.3
21.6
23.7
24.2
25.3
27.6
32.3
20.9
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
12,161
14,889
11,204
7,555
6,018
8,766
3,599
3,384
787
138
75
68,932
17.6
21.6
16.3
11.0
8.7
12.7
5.2
4.9
1.1
0.2
0.1
100.0
Average
Income
(Dollars)
5,710
15,384
25,667
36,120
46,555
63,234
89,193
137,406
300,163
697,814
2,972,435
43,878
Average
Federal Tax
Burden
(Dollars)
483
1,291
3,420
6,309
9,146
13,851
21,590
34,564
80,679
201,857
972,133
9,386
Average AfterTax Income 4
(Dollars)
5,227
14,093
22,247
29,810
37,409
49,383
67,604
102,842
219,483
495,957
2,000,302
34,492
Average
Federal Tax
Rate 5
8.5
8.4
13.3
17.5
19.6
21.9
24.2
25.2
26.9
28.9
32.7
21.4
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
2.3
7.6
9.5
9.0
9.3
18.3
10.6
15.4
7.8
3.2
7.3
100.0
2.7
8.8
10.5
9.5
9.5
18.2
10.2
14.6
7.3
2.9
6.3
100.0
0.9
3.0
5.9
7.4
8.5
18.8
12.0
18.1
9.8
4.3
11.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on long-term capital gains (0 percent for
tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption phaseout (PEP) and limitation on itemized deductions (Pease); extension of the 33 and 35
percent tax brackets. Policy is an estate tax set at the 2009 level, not indexed for inflation ($3.5 million exemption, 45 percent tax rate).
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0152
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Married Tax Units Filing Jointly
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.1
0.0
Share of Total
Federal Tax
Change
0.2
0.6
1.9
1.6
1.0
2.0
3.3
10.8
30.4
19.3
28.1
100.0
Average Federal Tax Change
Dollars
-2
-4
-9
-9
-6
-5
-9
-16
-151
-542
-1,582
-40
Percent
-0.8
-0.8
-0.8
-0.3
-0.1
-0.1
-0.1
-0.1
-0.2
-0.3
-0.2
-0.2
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
0.0
0.1
0.3
0.7
1.2
5.5
8.7
29.3
21.3
9.4
23.3
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-0.1
-0.1
0.0
Under the
Proposal
4.8
2.7
4.5
7.6
10.4
14.2
17.5
21.2
24.3
25.2
29.1
21.6
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,172
4,097
4,842
4,391
4,095
9,883
9,149
16,193
4,941
876
435
61,357
3.5
6.7
7.9
7.2
6.7
16.1
14.9
26.4
8.1
1.4
0.7
100.0
Average
Income
(Dollars)
4,766
16,031
25,959
36,302
46,760
65,241
90,792
142,545
295,420
706,519
3,075,014
126,020
Average
Federal Tax
Burden
(Dollars)
228
441
1,186
2,752
4,890
9,275
15,852
30,250
71,980
178,819
896,974
27,246
Average AfterTax Income 4
(Dollars)
4,538
15,590
24,773
33,550
41,870
55,967
74,940
112,295
223,440
527,700
2,178,040
98,773
Average
Federal Tax
Rate 5
4.8
2.8
4.6
7.6
10.5
14.2
17.5
21.2
24.4
25.3
29.2
21.6
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.1
0.9
1.6
2.1
2.5
8.3
10.7
29.9
18.9
8.0
17.3
100.0
0.2
1.1
2.0
2.4
2.8
9.1
11.3
30.0
18.2
7.6
15.6
100.0
0.0
0.1
0.3
0.7
1.2
5.5
8.7
29.3
21.3
9.4
23.4
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on long-term capital gains (0 percent for
tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption phaseout (PEP) and limitation on itemized deductions (Pease); extension of the 33 and 35
percent tax brackets. Policy is an estate tax set at the 2009 level, not indexed for inflation ($3.5 million exemption, 45 percent tax rate).
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0152
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Head of Household Tax Units
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units 3
With Tax Cut
With Tax
Increase
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.2
0.1
0.2
0.0
Share of Total
Federal Tax
Change
0.1
0.3
0.3
1.7
2.2
9.0
14.5
25.7
27.4
6.5
12.1
100.0
Average Federal Tax Change
Dollars
0
0
0
-1
-2
-7
-29
-81
-506
-752
-3,092
-11
Percent
0.0
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.3
-0.7
-0.5
-0.3
-0.2
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
-0.9
-3.2
1.8
9.3
11.4
27.7
17.8
18.9
7.5
2.8
6.9
100.0
Average Federal Tax Rate5
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
-0.1
-0.2
-0.1
-0.1
0.0
Under the
Proposal
-7.8
-5.7
2.1
9.6
14.1
17.4
20.3
22.9
24.0
24.2
30.0
13.8
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units 3
Number
(thousands)
Percent of
Total
2,483
5,029
4,757
3,767
2,449
3,559
1,389
877
150
24
11
24,547
10.1
20.5
19.4
15.4
10.0
14.5
5.7
3.6
0.6
0.1
0.0
100.0
Average
Income
(Dollars)
6,647
15,579
25,971
36,157
46,569
63,082
89,214
132,993
294,130
686,382
2,985,055
41,760
Average
Federal Tax
Burden
(Dollars)
-520
-890
539
3,468
6,564
10,964
18,114
30,472
70,946
166,705
899,455
5,757
Average AfterTax Income 4
(Dollars)
7,167
16,470
25,432
32,689
40,006
52,118
71,100
102,521
223,184
519,677
2,085,601
36,003
Average
Federal Tax
Rate 5
-7.8
-5.7
2.1
9.6
14.1
17.4
20.3
22.9
24.1
24.3
30.1
13.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
1.6
7.6
12.1
13.3
11.1
21.9
12.1
11.4
4.3
1.6
3.2
100.0
2.0
9.4
13.7
13.9
11.1
21.0
11.2
10.2
3.8
1.4
2.6
100.0
-0.9
-3.2
1.8
9.2
11.4
27.6
17.8
18.9
7.5
2.8
6.9
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and 10
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on long-term capital gains (0 percent for
tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption phaseout (PEP) and limitation on itemized deductions (Pease); extension of the 33 and 35
percent tax brackets. Policy is an estate tax set at the 2009 level, not indexed for inflation ($3.5 million exemption, 45 percent tax rate).
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0152
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Tax Units with Children
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units
3
With Tax
Increase
With Tax Cut
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.1
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.1
0.0
0.0
Share of Total
Federal Tax
Change
0.0
0.1
0.3
1.2
0.9
4.0
10.7
13.7
29.8
17.7
21.0
100.0
Average Federal Tax Change
Dollars
0
0
0
-1
-1
-3
-11
-9
-66
-246
-626
-12
Percent
0.0
0.0
0.1
-0.1
0.0
0.0
-0.1
0.0
-0.1
-0.1
-0.1
-0.1
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
-0.2
-0.9
-0.1
1.4
2.3
7.9
10.1
29.5
21.0
8.7
20.2
100.0
5
Average Federal Tax Rate
Change (%
Points)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Under the
Proposal
-11.6
-9.4
-0.8
7.6
12.5
15.9
18.4
21.4
25.0
26.8
30.3
20.5
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units
3
Number
(thousands)
Percent of
Total
2,968
5,639
5,683
4,891
3,849
7,425
5,841
9,319
2,750
441
206
49,155
6.0
11.5
11.6
10.0
7.8
15.1
11.9
19.0
5.6
0.9
0.4
100.0
Average
Income
(Dollars)
6,252
15,769
25,918
36,161
46,701
64,368
90,740
142,137
293,742
705,334
3,105,769
95,419
Average
Federal Tax
Burden
(Dollars)
-725
-1,488
-196
2,764
5,859
10,220
16,678
30,481
73,488
189,310
942,356
19,586
Average AfterTax Income 4
(Dollars)
6,978
17,257
26,114
33,397
40,842
54,148
74,062
111,656
220,254
516,024
2,163,413
75,833
Average
Federal Tax
Rate 5
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
-11.6
-9.4
-0.8
7.6
12.6
15.9
18.4
21.4
25.0
26.8
30.3
20.5
0.4
1.9
3.1
3.8
3.8
10.2
11.3
28.2
17.2
6.6
13.7
100.0
0.6
2.6
4.0
4.4
4.2
10.8
11.6
27.9
16.3
6.1
12.0
100.0
-0.2
-0.9
-0.1
1.4
2.3
7.9
10.1
29.5
21.0
8.7
20.2
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Note: Tax units with children are those claiming an exemption for children at home or away from home.
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on long-term capital gains (0 percent for
tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption phaseout (PEP) and limitation on itemized deductions (Pease); extension of the 33 and 35 perc
tax brackets. Policy is an estate tax set at the 2009 level, not indexed for inflation ($3.5 million exemption, 45 percent tax rate).
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.
21-Jul-10
PRELIMINARY RESULTS
http://www.taxpolicycenter.org
Table T10-0152
Incremental Effects of Extending the 2001 and 2003 Tax Cuts
Impose Estate Tax with 45 Percent Tax Rate and $3.5 Million Exemption, Not Indexed
Distribution of Federal Tax Change by Cash Income Level, 2012 1
Detail Table - Elderly Tax Units
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Percent of Tax Units
3
With Tax
Increase
With Tax Cut
0.0
0.0
0.0
0.0
0.1
0.2
0.3
0.5
0.9
1.1
1.5
0.2
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Percent Change
in After-Tax
Income 4
Share of Total
Federal Tax
Change
0.1
0.1
0.1
0.1
0.9
0.6
0.9
1.2
1.5
1.1
0.4
0.8
0.1
0.5
1.1
0.4
5.9
10.3
11.2
26.9
26.5
9.0
7.9
100.0
Average Federal Tax Change
Dollars
Percent
-3
-11
-34
-22
-398
-356
-677
-1,370
-3,567
-5,578
-9,145
-498
-1.7
-2.8
-3.0
-1.0
-11.4
-5.2
-5.4
-5.2
-5.0
-3.1
-1.0
-3.7
Share of Federal Taxes
Change (%
Points)
0.0
0.0
0.0
0.0
-0.2
-0.1
-0.1
-0.3
-0.3
0.1
0.9
0.0
Under the
Proposal
0.1
0.6
1.4
1.6
1.8
7.2
7.4
18.9
19.3
10.8
30.9
100.0
5
Average Federal Tax Rate
Change (%
Points)
-0.1
-0.1
-0.1
-0.1
-0.9
-0.6
-0.8
-1.0
-1.2
-0.8
-0.3
-0.7
Under the
Proposal
3.1
2.5
4.4
5.9
6.6
10.0
13.2
17.8
22.4
24.5
30.1
17.2
Baseline Distribution of Income and Federal Taxes
by Cash Income Level, 2012 1
Cash Income Level
(thousands of 2009
dollars) 2
Less than 10
10-20
20-30
30-40
40-50
50-75
75-100
100-200
200-500
500-1,000
More than 1,000
All
Tax Units
3
Number
(thousands)
Percent of
Total
2,305
6,471
5,084
2,999
2,259
4,405
2,504
2,986
1,128
245
132
30,543
7.6
21.2
16.7
9.8
7.4
14.4
8.2
9.8
3.7
0.8
0.4
100.0
Average
Income
(Dollars)
Average
Federal Tax
Burden
(Dollars)
6,366
15,655
25,560
36,054
46,537
64,489
89,136
141,589
304,121
709,954
3,095,895
75,737
200
400
1,145
2,139
3,486
6,828
12,457
26,517
71,540
179,761
939,431
13,515
Average AfterTax Income 4
(Dollars)
6,166
15,254
24,415
33,915
43,051
57,661
76,679
115,073
232,581
530,193
2,156,464
62,223
Average
Federal Tax
Rate 5
3.1
2.6
4.5
5.9
7.5
10.6
14.0
18.7
23.5
25.3
30.3
17.8
Share of PreTax Income
Percent of
Total
Share of PostTax Income
Percent of
Total
Share of
Federal Taxes
Percent of
Total
0.6
4.4
5.6
4.7
4.5
12.3
9.7
18.3
14.8
7.5
17.7
100.0
0.8
5.2
6.5
5.4
5.1
13.4
10.1
18.1
13.8
6.9
15.0
100.0
0.1
0.6
1.4
1.6
1.9
7.3
7.6
19.2
19.6
10.7
30.0
100.0
Source: Urban-Brookings Tax Policy Center Microsimulation Model (version 0509-5).
Note: Elderly tax units are those with either head or spouse (if filing jointly) age 65 or older.
(1) Calendar year. Baseline is current law plus a permanent AMT patch at 2009 levels, indexed for inflation; extension of low- and middle-income tax cuts (extend the 10, 25, and 28 percent rates; set the standard deduction and
and 15 percent tax brackets for couples filing jointly to double those for singles; raise the EITC phaseout threshold for couples filing jointly; and extend expansions of the student loan interest deduction, the Earned Income Tax
Credit (EITC), the Child and Dependent Care Tax Credit (CDCTC), and the Child Tax Credit (CTC); taxation of qualified dividends the same as long-term capital gains; reduced tax rates on long-term capital gains (0 percent for
tax units in 15 percent bracket or lower, 15 percent for tax units in tax brackets above 15 percent); repeal of the personal exemption phaseout (PEP) and limitation on itemized deductions (Pease); extension of the 33 and 35 perc
tax brackets. Policy is an estate tax set at the 2009 level, not indexed for inflation ($3.5 million exemption, 45 percent tax rate).
(2) Tax units with negative cash income are excluded from the lowest income class but are included in the totals. For a description of cash income, see
http://www.taxpolicycenter.org/TaxModel/income.cfm
(3) Includes both filing and non-filing units but excludes those that are dependents of other tax units.
(4) After-tax income is cash income less: individual income tax net of refundable credits; corporate income tax; payroll taxes (Social Security and Medicare); and estate tax.
(5) Average federal tax (includes individual and corporate income tax, payroll taxes for Social Security and Medicare, and the estate tax) as a percentage of average cash income.